Guide to the tax deduction for maternity/paternity

Apart from maternity leave, the tax deduction is another civil right that parents can enjoy when they welcome a newborn baby.

 

1. What is the benefit?

2. Who can benefit from the advance payment?

3. How is the deduction carried out?

4. How should I present form 140?

5. What are the modifications that I need to notify the Tax Agency?

6.  Recommendations from Adeslas:

 

 

1. What is the benefit?

 

 

According to the Personal Income Tax (IRPF) Act, parents of newborns can enjoy a tax deduction of up to €1,200 per year for each child born or adopted in Spain as long as the kid is under 3 years old. Personal income taxpayers with the right to this deduction can even request the advance payment of this deduction.

 

 

2. Who can benefit from the advance payment?

 

The advance payment of the deduction for maternity can be requested by women with children under 3 years old, who carry out an activity for themselves or an employer and are registered in the corresponding Social Security or Mutual Fund regime. They can reduce the total tax liability of Personal Income Tax by €1,200 for each child under 3.

 

In cases of adoption or foster care placements, the deduction can be carried out regardless of the age of the child. The deduction can be carried out 3 years following the date of the Civil Registry record, or for the 3 years following the judicial or administrative resolution date.

 

In the event of the mother's death or when guardianship or custody is assigned exclusively to the father or a guardian, this person will have the right to the outstanding deduction, provided that the requirements established for this right are met.

 

 

3. How is the deduction carried out?

 

This deduction can be carried out in two ways:

 

• In advance: The person will get a tax deduction of €100 per child for each month, in which the taxpayer is registered and contributing to the corresponding Social Security or Mutual Fund regime, (generally for a minimum of 15 days, the monthly amount). In this case, the form 140 is required.

 

Taxpayers with the right to the advance payment of the maternity deduction must communicate any data modifications that might affect the advance payment to the Tax Agency. They also need to inform the Tax Agency if they no longer meet the requirements for any reason.

• Applying the deduction in the annual Personal Income Tax return: As indicated in the name, the tax is deducted annually, not monthly like the other option.

 

 

4. How should I present form 140?

 

 

Form 140 is required for the following occasions:

 

• application of advance payment of maternity deduction
• communication of variations and any changes to the employment status

 

Form 140 can be presented in the following ways:

 

• Online: You can submit it online via the electronic headquarter of the tax agency (Sede electrónica de la Agencia Tributaria). The applicant needs to present the following information:
  • Tax identification number (Número de Identificación Fiscal, also known as NIF)
  • Electronic DNI(DNI electrónico), certificado electrónico or cl@ve

 

If the application or the modification is accepted, the Tax Agency will respond online with all valid information, an electronic code of 16 characters, and the date and time of the application presentation.

 

• Via phone call: You can also make the application or modification by calling the Tax Agency Telephone Attention Center at 901 200 345. The documents needed are:
  • Tax identification number (Número de Identificación Fiscal, also known as NIF)
  • Bank account number
  • Social Security or Mutual Insurance affiliation number
  • Civil entry data that appear in the family book
  • If you work, you might also inform your usual tax payable details  

 

• By mail: It is possible to inform the tax agency by mail. You need to mail the necessary documents to the State Tax Administration. (Post Office section FD number 30,000, Provincial Delegation), or by direct delivery to any Delegation or Administration of the Tax Agency. However, the first two ways are preferred.

 

Note: You might also be asked for the documents of empadronamiento, the residence permit, and the extract of the family book or a certificate showing the parenthood of the child born or adopted.

 

 

5. What are the modifications that I need to notify the Tax Agency?

 

Once you have filed the request for an advance payment of the deduction for maternity, you will not need to do so again throughout the period in which you have this right, unless you need to communicate any subsequent modifications such as:

 

• Death of the beneficiary of the advance deduction payment
• De-registration of the beneficiary from Social Security or the Mutual Fund
• Change of residence of the beneficiary abroad or from the rest of Spain to the Historic Territories of the País Vasco or the Navarra region
• If the beneficiary gives up the advance deduction payment
• Change of the beneficiary's Social Security or Mutual Fund regime
• The deregistration of any of the children, for the deduction, due to death, cessation of cohabitation with a loss of guardianship and custody, or for earning an income of more than 8,000 euros

 

However, you will not need to communicate if the right terminates automatically:

 

• when the child turns 3
• or in cases of adoption or foster care placement, when 3 years have elapsed since the date of adoption or the start of the foster care placement

 

 

6.  Recommendations from Adeslas:

 

Here in Adeslas, we care about you and the whole family. We offer the best private medical insurance, dental insurance, and accident insurance to protect the safety of you and the new birth.

 

New birth and recently pregnant moms may encounter discomfort as they heal. With our insurance, you will get the best medical treatment with the least queuing time to ensure your health and safety. Go check the offers out!

 

If you would like to know more about this topic, check out one of these other blogs:

• Guide to Maternity / Paternity in Spain
• What are documents your newborn may need in Spain?
• How to register your newborn baby in Spain?

 

 

Reference:

 

[1] Personal income tax - Taxation - Work and retirement - Citizens - Your rights and obligations in the EU - Tu espacio europeo - Inicio. (2021). Retrieved 27 August 2021, from https://administracion.gob.es/pag_Home/en/Tu-espacio-europeo/derechos-obligaciones/ciudadanos/trabajo-jubilacion/fiscalidad/impuesto-renta.html

[2] Deduction for maternity - Tax Agency. (2023). Retrieved 15 June 2023, from https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/GZ25.shtml 

 

 Our content will be updated according to the most recent legislation. Last update: 15/06/2023